Ades Holding Company · TADAWUL:2382
Ades — FY2024 Earnings Presentation
24 slides from Ades's earnings presentation, February 2025
Slide 1: ADES Holding Company FY 2024 Trading Update
ADES Holding Company FY 2024 Trading Update February 2025
Slide 2: Today's Presenters and Agenda
Today’s Presenters AGENDA 1. Market Update 2. Business Update Hussein Badawy 3. Financial Update Dr. Mohamed Farouk Group Chief Executive Officer Group Chief Financial Officer 4. Q&A ……………. 2
Slide 3: Leader in Shallow Water Offshore and Onshore Drilling
Leader in Shallow Water Offshore and Onshore Drilling Global Scale Operations with 91 Rigs in 11 Countries 16 6 3 2 14 11 1 27 # of rigs 3 3 1 2 51 offshore 40 onshore 2 Proven Consolidator Partner of Choice for Critical Committed to Operational Leading Scale & Profitability Visible, Contracted Grow
Slide 4: Market Update
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Slide 5: Continued Demand and Investment in Oil & Gas well into 2050
Continued Demand and Investment in Oil & Gas well into 2050 Projected Global Energy Mix (mboe/d, %)* Global Oil Supply Scenarios Outlook* Oil & Gas Coal Nuclear Hydro Bioenergy Other Renewables 120 374.0 100 327.3 14% 301.1 6% 3% 10% 10% New Resources & 80 Millions barrels per day 10% 3% 3% Projects
Slide 6: Sustained CAPEX Growth to Maintain Healthy Supply/Demand Balance
Sustained CAPEX Growth to Maintain Healthy Supply/Demand Balance Upstream Oil & Gas CAPEX Forecast (USD bn)* 708 724 735 738 663 684 577 603 514 367 300 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Global Liquids Supply/Demand Balance ((LHS) mmboepd supply/demand balance; (RHS) mmboepd tot
Slide 7: Sustained Tightness in the Offshore Jackup Market
Sustained Tightness in the Offshore Jackup Market Tight supply-demand dynamics set to continue … …Utilization rates to remain tight hovering around the 90% mark even when factoring-in the suspensions in KSA Approximately 160 rigs have been scrapped till 2023 Global Jackup Utilization for Premium & S
Slide 8: Successful Redeployment of Suspended Rigs
Successful Redeployment of Suspended Rigs Key Facts The latest update is around 31-33 offshore contracts with Aramco have been suspended for the drillers. Re-contracting of the suspended rigs has been a challenge amongst drillers, with only 14 rigs re-contracted till date. ADES has successfully cont
Slide 9: Business Update
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Slide 10: Operational Highlights
Operational Highlights 97.7% in FY 2024 28.27 SAR bn as at FY 2024 (vs.98.0% FY 2023) (vs. SAR 27.54 bn in FY 2023) Utilization Rate1 Total Backlog c.5.13 Years 0.06 Weighted Average Remaining in FY 2024 Contract Tenor2 (vs. IADC standard of 0.46) Tenor TRIR3 FY 2024 saw ADES expand its presence to
Slide 11: 24 Rigs, 18 Months: A Record-Breaking Achievement in Offshore Drilling
24 Rigs, 18 Months: A Record-Breaking Achievement in Offshore Drilling Industry Strengthening ADES’ Position as a Global Offshore Leader 24 Rigs1 2-7 Years 4 Different Clients Full deployment Average contract tenor Our Key Principles to Deliver Operational Excellence, Safety, and Speed at Scale Buil
Slide 12: Delivering Strong Results Despite Market Challenges
Delivering Strong Results Despite Market Challenges FY 2024 FY 2023 Change SARmn, % YoY Revenue 6,199 4,332 + 43.1% EBITDA1 3,037 2,139 + 42.0% As a % of Revenue 49.0% 49.4% - 0.4pp Net Profit 816 452 +80.5% Operating Cash Flow2 3,168 2,104 + 50.6% Source: ADES information. 1EBITDA includes a non-ca
Slide 13: While Securing the Highest Backlog in ADES' History
While Securing the Highest Backlog in ADES' History Significant Share from Offshore and GCC countries with Long-Term Contracts The Group’s total backlog stood at SAR 28.27 bn as of 31 Dec 2024 the highest in ADES’ history, up from SAR 27.54 billion as of 31 December 2023. This comes despite a revenu
Slide 14: Committed to Operational Excellence & Sustainability
Committed to Operational Excellence & Sustainability Best-in-Class Safety Record Supported by Continued Innovation The REI Drives Levels of Activity and Renewals with Aramco Total Recordable Injury Rate (TRIR)1 Local FTP4 Content3 10% 45% IADC2 Average Rig Efficiency REI Index (“REI”) 0.46 Compositi
Slide 15: FY 2024 Financial Update
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Slide 16: All-time High Backlog Despite Revenue Burn Rate
All-time High Backlog Despite Revenue Burn Rate Thanks to Contract Renewals and Awards Backlog (SAR bn) Contract Awards and Renewals in FY-2024 The newly awarded long-term contract for one offshore rig in KSA in 3Q-2024, as 2.6% KSA well as two 10-year onshore renewals. 27.54 28.27 Kuwait The expans
Slide 17: Strong Ramp-up of Activity Leading to Growth Across Geographies
Strong Ramp-up of Activity Leading to Growth Across Geographies Revenue Evolution by Country (SAR mn) FY 2023 FY 2024 44.8% 4,143 30.6% 9.1% 3.2% 1125% 93.7% 2,861 615 535 486 471 345 356 220 197 181 18 102 - KSA Kuwait Egypt Qatar India Algeria & Tunisia Southeast Asia Strong Group revenue growth o
Slide 18: Robust Profitability Reflecting Strong Offshore Growth and Lean Cost Structure
Robust Profitability Reflecting Strong Offshore Growth and Lean Cost Structure Consolidated Revenue by Segment (SAR bn) EBITDA (SAR mn) 43.1% 49.4% 49.0% 6,199 42.0% 21.9% 4,332 27.0% 3,037 78.1% 2,139 73.0% FY 2023 FY 2024 FY 2023 EBITDA margin FY 2024 Offshore Revenue Onshore Revenue Strong revenu
Slide 19: Strong Revenue Growth, Controlled Costs and Higher Interest Income
Strong Revenue Growth, Controlled Costs and Higher Interest Income Deliver a Nearly Twofold Increase in Net Profit Net Profit (SAR mn) Group Equity1 (SAR mn) 13.2% 10.4% 13.2% 6,538 80.5% 816 5,777 452 FY 2023 Net Profit margin FY 2024 FY 2023 FY 2024 Net profit recorded a significant 80.5% y-o-y in
Slide 20: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 85.4% 85.4% 41.3% (excl. Vantage acquisition) 41.9% 4,048 3,088 2,593 712 1,827 2,376 FY 2023 FY 2024 Vantage Acquisition FY 2023 FY 2024 % Cash Conversion2 Total capital expenditure in FY 2024 amounted to SAR 3,088 million, of whic
Slide 21: Net Debt Evolution
Net Debt Evolution FY 2024 Net Debt Bridge1 (SAR mn) The balance of cash and cash equivalents as of 31 December 2024 amounted to SAR 744 mn. 1Net debt equals Interest-bearing loans and borrowings, less cash excluding lease liability. * The total amount of SAR 1,306mn includes SAR 819mn for interest
Slide 22: 2H-2024 Dividend and Guidance for 2025
2H-2024 Dividend and Guidance for 2025 • The Board of Directors has decided to distribute a cash dividend equivalent to 60% of the Group’s 2H-2024 net profit attributable to equity holders, amounting to SAR 242.2 SAR 242.2mn million. Dividend for 2H-2024 • Management anticipates that FY 2025 EBITDA
Slide 23: ei Wa oe
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Slide 24: Important Notice
Important Notice This document and information contained herein (the “Information”) has been prepared by ADES Holding Company (the “Company”) for background purposes only and does not purport to be a full, accurate, complete or comprehensive analysis of the Company’s business, financial or trading p